Investor Insights: AI Stocks Hit by Recession Concerns

AI stocks face turbulence as tariffs raise recession fears. Notably, Nvidia and Microsoft analysts predict potential upside despite current declines, presenting a buying opportunity for long-term investors.

Date: 21-03-2025

AI Rating: 6

Market Overview

Recent reports indicate the decline of artificial intelligence stocks, particularly the "Magnificent Seven," due to tariffs and recession worries. Among those, Nvidia and Microsoft analysts have highlighted these companies as potentially oversold, suggesting an opportunity for investors.

Nvidia Analysis

Nvidia's current market concerns stem from two main factors: the restriction of their powerful chips to certain markets and competition in training AI models. Despite these challenges, the company has new growth avenues with the launch of Blackwell GPUs and ongoing developments in AI solutions. Nvidia is expected to achieve earnings growth of 39% annually through fiscal 2027.

Microsoft Analysis

Microsoft is poised to capitalize on the growing enterprise software and cloud computing markets, with expected earnings growth of 13% annually through fiscal 2026. Despite some investor skepticism, the integration of AI in their products is expected to enhance market share and profitability.

Conclusion

Both companies face headwinds due to tariffs and market competition, but the anticipated long-term growth in AI and cloud services positions them favorably for future investment.

Stocks: NVDA MSFT